Discontinue a Segment

Product Tango has revenue of $193,600, variable cost of goods sold of $114,800, variable selling expenses of $32,700, and fixed costs of $58,400, creating an operating loss of $(12,300).

a. Prepare a differential analysis as of February 13 to determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss.

Differential Analysis
Continue Product Tango (Alt. 1) or Discontinue Product Tango (Alt. 2)
February 13
	Continue Product Tango (Alternative 1)	Discontinue Product Tango (Alternative 2)	Differential Effects (Alternative 2)
Revenues	$fill in the blank d8b8fe00bfe401d_1	$fill in the blank d8b8fe00bfe401d_2	$fill in the blank d8b8fe00bfe401d_3
Costs:
Variable cost of goods sold	fill in the blank d8b8fe00bfe401d_4	fill in the blank d8b8fe00bfe401d_5	fill in the blank d8b8fe00bfe401d_6
Variable selling and admin. expenses	fill in the blank d8b8fe00bfe401d_7	fill in the blank d8b8fe00bfe401d_8	fill in the blank d8b8fe00bfe401d_9
Fixed costs	fill in the blank d8b8fe00bfe401d_10	fill in the blank d8b8fe00bfe401d_11	fill in the blank d8b8fe00bfe401d_12
Profit (Loss)	$fill in the blank d8b8fe00bfe401d_13	$fill in the blank d8b8fe00bfe401d_14	$fill in the blank d8b8fe00bfe401d_15

b. Determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2).